Capital Budget Process
Report to the Joint Legislative Audit
and Review Committee
OFFICE OF FINANCIAL MANAGEMENT
DECEMBER 2005
TABLE OF CONTENTS
Executive Summary .....................................................................................................1
Capital Process Review – Objectives ..........................................................................3
Proposals to Address Objectives Identified .................................................................4
Improve Budget Development Work Plan – (Objectives C & E) ..............................11
Performance Measures and Guidelines Work Plan – (Objective A) ..........................13
Facility Condition Information Work Plan – (Objective H).......................................14
Funding Sources Work Plan – (Objective B) .............................................................16
Improve Allotment and Monitoring Work Plan – (Objective F)................................17
Streamline Budget Bill Work Plan – (Objective I).....................................................19
Capital Review Process Timeline – (Chart) ...............................................................20
EXECUTIVE SUMMARY
In February 2005, the Joint Legislative Audit and Review Committee (JLARC) issued a
performance audit report on the state’s capital budget process. The report recommended
that the Office of Financial Management (OFM) develop a plan to address shortcomings
in the capital budget process. Specifically, we were asked to:
• Align resources to program workload;
•
Identify and institutionalize procedures and best practices;
• Create easily accessible, reliable information systems;
• Develop statewide performance measures for all capital projects; and
• Evaluate projects earlier in the planning phase.
The JLARC report focused on “major projects.” Knowing that OFM, the Legislature,
and state agencies need better ways to collect and analyze data, OFM decided to evaluate
the entir